AgraFlora Organics International Inc (CSE:AGRA) (OTCMKTS:AGFAF) is seeing early success from its recent acquisition of German medical cannabis distributor The Good Company GmbH.
Vancouver-based AgraFlora said Tuesday that The Good Company’s subsidiary, Farmako GmbH, posted nearly C$3.1 million in gross revenue during fiscal 2019.
The figure includes gross margin of 47% for cumulative gross profits of nearly C$1.5 million during the 12-month period from January 1 to December 31, 2019.
AgraFlora completed the acquisition of The Good Company and Farmako at the beginning of January. In a statement accompanying the close of the deal, AgraFlora CEO Brandon Boddy said the combined entity will be equipped with “world-class” upstream cultivation assets, as well as efficient European downstream capabilities that will “act as a beachhead” into the 700-million-person European marketplace.
Farmako is a leading European medical cannabis distributor, headquartered in Frankfurt, with affiliated companies in the UK, Luxembourg and Denmark. The company has a distribution network of 19,800 pharmacies covering 100,000 patients.
A diversified cannabis company, AgraFlora owns an indoor cultivation facility in London, Ontario, as well as an edibles manufacturing facility in Winnipeg, currently being retrofitted.
The company is also a joint venture partner in Propagation Services Canada Inc, which operates a 2.2 million-square-foot greenhouse complex in Delta, British Columbia.
Follow her on Twitter @AHarmantas